Potato supplier goes out of business with £4m debts - growers owed £1m

Norfolk-based potato processor Preva Produce is now in administration
Norfolk-based potato processor Preva Produce is now in administration

Businesses across Norfolk and Suffolk are among those poised to lose out on £4.67m after a potato supplier went into administration.

Potato growers are among those owed a piece of the £4.67m, with the sum estimated around more than £1m.

Norfolk-based potato processor Preva Produce has been placed in administration earlier this year, with 20 job losses due to significant cash flow pressures and difficult trading conditions.

The company was also discovered of fraud and incorrect accounting practices.

Business advisers Matt Howard and Stuart Morton were appointed to try to rescue the company but were unable to find a buyer and are now attempting to complete selected contracts to recover money for creditors.

In the administrator’s statement Mr Howard said: “Following the discovery of a fraud and incorrect accounting practices/procedures, Price Bailey LLP were engaged by Preva Holdings and HSBC Bank in August 2016 to produce a limited scope procedures report and a negative assurance report to Preva Holdings. This work highlighted a shortfall in actual debtors of approximately £1m as at June 30 2016 as against expected results.

“It was also clear at this stage that the reported stock values were significantly higher than the actual amounts.”

Preva Produce was established in 2001 to supply chipping and crisping potatoes for companies including Walkers, Kettle, Asda and Morrisons.